Comstock(CHCI) - 2024 Q4 - Annual Report

Revenue Performance - Revenue for 2024 reached $51.3 million, a 14.7$44.7 million in 2023[104] - Revenue for 2024 increased to $51.294 million, up 14$44.721 million in 2023[153] - Total revenue for the year ended December 31, 2024, was $51.3 million, an increase of 14.4$44.7 million in 2023[240] - Revenue from asset management increased to $31.5 million in 2024, up from$29.3 million in 2023, representing a growth of 7.4%[240] - Revenue from Incentive Fees decreased to $1.5 million in 2024 from$4.8 million in 2023, reflecting a significant decline[131] - The Company recognized incentive fee revenue of $1.5 million in 2024, a significant decrease from$4.8 million in 2023[242] Income and Profitability - Net income for 2024 was $14.6 million, compared to$7.8 million in 2023, reflecting a significant increase[104] - Net income for 2024 was $14,560,000, compared to$7,784,000 in 2023, representing an increase of 87%[153] - Basic net income per share rose to $1.48 in 2024 from$0.81 in 2023, a growth of 82%[153] - Diluted net income per share rose to $1.41 in 2024 from$0.77 in 2023, reflecting an increase of 83.1%[248] - The effective tax rate for 2024 was -35.76%, primarily due to a valuation allowance release of $6.5 million, compared to 4.51$41.0 million in 2024, up from $35.6 million in 2023[106] - Operating costs and expenses for 2024 totaled$41.007 million, an increase of 15% from $35.557 million in 2023[153] - Asset management and corporate operating expenses increased to$23.8 million in 2024 from $21.6 million in 2023[275] - ParkX operating expenses rose significantly to$7.1 million in 2024, compared to $4.2 million in 2023, marking an increase of approximately 69.0$0.9 million in 2024 from $1.0 million in 2023[275] Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were$28.8 million, with an additional $10.0 million available from the Credit Facility[119] - Cash and cash equivalents at the end of 2024 were$28.761 million, an increase of 53% from $18.788 million at the end of 2023[159] - Net cash provided by operating activities increased to$10,675,000 in 2024 from $9,003,000 in 2023, a change of$1,672,000[121] Assets and Investments - Total assets increased to $64.867 million in 2024, up from$49.939 million in 2023, reflecting a growth of 30%[151] - The Company had $111.1 million of net operating loss carryforwards as of December 31, 2024[109] - The Company’s investments in real estate ventures decreased from$7,077,000 in 2023 to $6,228,000 in 2024, reflecting a change in fair value of$(320,000)[212] - Revenue from unconsolidated investments in real estate ventures increased from $24,877,000 in 2023 to$28,115,000 in 2024, representing a growth of approximately 9.0%[217] Tax and Valuation - The company recorded a $3.8 million income tax benefit in 2024, compared to a provision of$0.4 million in 2023, resulting in a net change of $4.2 million[109] - The company released$6.5 million of the valuation allowance for deferred tax assets, indicating management's confidence in future taxable income[145] - The Company had total deferred tax assets of $16.3 million as of December 31, 2024, after accounting for a valuation allowance of$17.1 million[245] Management and Agreements - The Company operates as a single reportable operating segment, primarily generating revenue from real estate services through asset and property management contracts[274] - The Company entered into a Business Management Agreement with Springfield Holdings, LLC, effective February 1, 2024, for management services[264] - CAM is entitled to an annual payment of at least $1.0 million under the 2022 asset management agreement[252] - The 2022 asset management agreement will terminate on January 1, 2035, with automatic one-year renewals unless a non-renewal notice is given[255] Other Financial Metrics - Adjusted EBITDA for 2024 was$11,597,000, an increase from $10,423,000 in 2023, driven by significant increases in recurring fee-based property and parking management revenue[115][116] - Total stockholders' equity increased to$52.369 million in 2024, compared to $37.216 million in 2023, marking a rise of 41$672,000 in interest income for 2024, significantly up from $96,000 in 2023[153] - The increase in interest income was$576,000 in 2024, totaling $672,000 compared to$96,000 in 2023, marking a 600.0% increase[108]